If the static budget amount is $6000 and the flexible budget amount is $15000, then the sales volume variance will be ___________?
Correct answer: A. $9,000
- A. $9,000
- B. $8,000
- C. $12,000
- D. $21,000
Explanation
Sales volume variance is the difference between the flexible and static budget amounts: $15,000 - $6,000 = $9,000. Therefore, option a matches the calculated variance.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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